Finding Text
2025-001 - Student Financial Assistance Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work-Study Program (c) Federal Perkins Loan (d) Federal Pell Grant Program (e) Federal Direct Student Loans (f) Teacher Education Assistance for College and Higher Education Grants (TEACH Grants) (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 (f) 84.379 - Year Ended June 30, 2025 Criteria: 34 CFR 668.162 (d) states: Under the heightened cash monitoring payment method, an institution must credit a student’s ledger account for the amount of Title IV, HEA program funds that the student or parent is eligible to receive, and pay the amount of any credit balance due before the institution submits a request for funds. Condition: We tested 40 students and credit balances were not paid in a timely manner for 8 students (20%). We consider this condition to be a material weakness for the Special Tests and Provisions compliance requirement and is not a repeated finding. Statistical Sampling was not used in making sample selections. Questioned Costs: $62,882. Cause and Effect: The condition was caused by not paying credit balances prior to requesting funds. As a result, the Institution was holding funds that needed to be returned to the students and violated the special conditions of provisional certification of its Program Participation Agreement (PPA). Recommendation: As the University did refund the credit balances to students within 14 days of receipt of drawdown, we recommend the University increase controls over Heightened Cash Monitoring procedures and refunding credit balances prior to drawdown of funds. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.